Bennelong Long Short Equity Management proposal to combine funds
The Absolute Equity Performance fund (AEG) has received a non-binding proposal from Bennelong Long Short Equity Management (BLESM) to amalgamate the fund and an unlisted managed investment scheme.
In an announcement to the Australian Securities Exchange (ASX) AEG said the scheme was the Bennelong Market Neutral (BMN) fund.
BLESM is the investment manager of both funds.
“BLESM indicates the proposal is designed to eliminate the share price discount due to the difference between AEG’s net tangible asset position and its current share price, and improving liquidity,” the announcement said.
“As part of the proposal, AEG shareholders would receive units in BMN and ultimately AEX would be wound up.
“The proposal would require appropriate AEG shareholder approval and the support of BMN.”
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.